Infosys has ushered in the 2023 holiday season with anticipated salary hikes, issuing compensation revisions earlier than expected. Originally slated for April 1, these increases will now take effect from November 1, 2023.
"We are pleased to revise your compensation in acknowledgement of your commitment and performance with effect from November 1, 2023,” stated an internal email, reported Business Today.
This compensation review program, applicable for the 2023-24 year, does exclude entry-level workers at Infosys, according to sources familiar with the matter cited by the publication. The average hike is projected to fall below 10%, with some employees receiving single-digit raises and others landing in the low double digits.
In 2023, the management deferred the originally scheduled April 1 salary hikes due to strategic business optimisation measures addressing industry challenges. Traditionally, Infosys rolls out annual salary hikes for non-senior management employees in April, with subsequent hikes in July.
Nilanjan Roy, Infosys' Chief Financial Officer (CFO), explained during an investor call that the delay in salary hikes was part of their strategy to address internal inefficiencies. "We had a good quarter two. And as I explained in my margin walk, we nearly had a 50 basis points improvement from our project Maximus on cost optimisation," Roy said. However, he is set to step down on March 31, 2023.
To enhance efficiency, the company aims to improve utilisation, reduce workforce numbers, and forego the current year's campus placement drive. In Q2 of FY24, Infosys reported a net reduction of 7,530 employees in its headcount, now totalling over 3.28 lakh employees as of September 2023.
Comparing figures from the previous quarter, Infosys' headcount has declined from over 3.36 lakh employees. Additionally, the company witnessed a year-on-year net reduction of 16,454 employees during the same period compared to the previous year.